Zscaler (ZS) on Tuesday reported fiscal fourth-quarter profit, revenue and billings that topped Wall Street targets amid sweeping sales shakeups. But the cybersecurity company’s fiscal 2025 guidance for Zscaler stock disappointed investors, sending shares lower.
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Reported after the market closed, Zscaler’s profit rose 37% to 88 cents a share from a year earlier on an adjusted basis. Revenue rose 30% to $592.9 million, the San Jose, California-based company said.
Zscaler analysts expected earnings of 70 cents per share on revenue of $567.5 million.
Additionally, billings for the fourth fiscal quarter increased 27% to $910.8 million, compared to estimates of $892.5 million.
Zscaler Stock: Guidelines Disappoint
For the current quarter, Zscaler expects revenue of $605 million, which is in line with the midpoint, compared to estimates of $603 million.
For fiscal 2025, which begins with the current quarter ending in October, Zscaler forecast earnings per share of $2.84, well below estimates of $3.33. Zscaler forecast revenue of $2.61 billion, slightly below estimates of $2.62 billion.
Today, Zscaler shares fell more than 8% to 177.50 on the stock market during extended trading.
Zscaler has hired a new chief revenue officer, chief marketing officer and other top sales executives as it overhauls its go-to-market strategy. Analysts have cut consensus estimates due to the sales organization overhaul.
Ahead of Zscaler’s earnings release, the cybersecurity stock had fallen 10% in 2024. Additionally, ZS stock had a Relative Strength Rating of 69 out of a possible 99, according to IBD Stock Checkup.
Zscaler delivers cloud-based cybersecurity services through 150 data centers worldwide. Zscaler web security gateways inspect customer traffic for malware.
Additionally, the Zscaler Private Access cloud service replaces virtual private networks to support remote work.
Zscaler competes with Palo Alto Networks (PANW) and Microsoft (MSFT) and the well-funded startup Wiz.
Meanwhile, Zscaler stock belongs to the IBD Computer-Software Security group, which ranks 150 out of 197 groups tracked.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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